Quick Answer: Are Merchant Banks Regulated?

Regulation of Merchant banking.


Introduction : “ A merchant bank is a financial institution providing capital to companies in the form of share ownership instead of loans.

SEBI has classified the merchant bankers into four categories based on the nature and range of the activities and responsibilities.

How is Merchant Banking regulated India?

Securities and Exchange Board of India (SEBI) is the regulatory authority for merchant banking in India. As per RBI’s Master Circular on Para-Banking activities, banks are allowed to undertake merchant banking activities through a separate subsidiary which would be required to comply with SEBI regulations.

What are the types of merchant banking?

Merchant Banking Regulations:

  • Category I Merchant Bankers: These merchant bankers can act as issue manager, advisor, consultant, underwriter and portfolio manager.
  • Category II Merchant Bankers:
  • Category III Merchant Bankers:
  • Category IV Merchant Bankers:

Does a merchant bank require a license?

Certain activities within the merchant bank also require financial or legal licenses. Most jobs in merchant banking require at least a bachelor’s or master’s degree in business or finance, plus the licenses required for the specific function.

Who bought Merchants Bank?

TUPELO, Miss., Nov. 13, 2018 /PRNewswire/ — BancorpSouth Bank (NYSE: BXS) announced today the signing of a definitive merger agreement with Merchants Trust, Inc. and its wholly owned subsidiary, Merchants Bank (collectively referred to as “Merchants”), pursuant to which Merchants will be merged with and into